India’s central bank on Tuesday left its key interest rate steady at 8 percent, following its first meeting after a landslide election win for the Bharatiya Janata Party (BJP).
In a statement, the Reserve Bank of India (RBI) said further policy tightening would not be warranted if the economy continues on a disinflationary path.
At the same time, the RBI took steps to raise the availability of credit, reducing the mandatory amount of bonds lenders must park with the central bank – called the statutory liquidity ratio – by 50 basis points to 22.5 percent of deposits from mid-June.
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